Written by Joey Frenette at The Motley Fool Canada
The Canadian banks have been in a rut for a few years now. If you’re a new Canadian investor, you may view the group as “dead money,” given the lacklustre results posted of late. Even looking further back, the results aren’t exactly compelling. Not when you can score a better shot at double-digit returns from those red-hot American mega-cap tech stocks!
Take shares of CIBC (TSX:CM), a $59.13 billion Canadian bank that’s down more than 14% in the last two years. Undoubtedly, recession jitters and macro headwinds have caused the bank stock to underwhelm. And though the juicy dividend (yielding 5.65%) has helped pad the recent selloff, many new investors likely aren’t drawn to high yields if there’s been a history of capital losses.
What good is a high yield if you’re just going to be in the red on the front of total returns (that’s dividends…
